Crypto Market in Freefall: Over $1 Billion Liquidated Amidst Panic Sell-Off

• Over $1 billion in crypto liquidations hit the market, with long-leveraged positions suffering the most. Bitcoin and Ethereum were hardest hit.
• Bitcoin saw $362M in liquidations, Ethereum $345.7M. Binance led with $412M, followed by OKX with $319.4M. Market volatility surged.
• Total crypto market valuation dropped 13.4% to $1.94T. Despite this, trading volumes surged 155%, reaching $220 billion.

The Asian trading session especially on Monday was characterized by massive trading, their liquidation reaching more than $1 billion. The worst hit were the long-leveraged traders; the founder of Tron, Justin Sun among them.

Since then, Sun has refuted these allegations, claiming that leverage trading is not something he and his staff undertake. He underlined that their key priorities still include staking, operating nodes, promoting blockchain initiatives, and giving the market liquidity.

Bitcoin and Ethereum Face Severe Impact

Data from Coinglass reveals that the total crypto market liquidations surged to $1.06 billion, marking a staggering 454% increase in just 24 hours. Of this total, approximately 85%, or $900.6 million, came from long positions. 

These traders had anticipated a price increase, only to face losses. Additionally, the data shows that over 278,000 dealers were liquidated on the previous day. With a total of $27 million, the Huobi exchange saw the greatest single liquidation.

Bitcoin and Ethereum were the hardest hit. Bitcoin accounted for $362 million of the liquidations, while Ethereum followed with $345.7 million. Binance led the liquidation charts, with $412 million in total, $342.6 million from longs and $69.9 million from shorts. OKX was the second largest, with $319.4 million in liquidations, $261 million from longs and $57.9 million from shorts.

Market Volatility and Trading Volume Surge

As a result, the total open interest in the cryptocurrency market fell to $47 billion, an 18.7% decrease. This decline is consistent with a larger adverse trend that the bitcoin industry is facing. CoinGecko stated that the global crypto market valuation dropped by 13.4% to $1.94 trillion.

However, trading volumes saw a dramatic increase. The daily trading volume jumped 155%, reaching $220 billion. Bitcoin experienced a 12% drop, trading at $52,880, and briefly dipped to $49,121. Its market cap fell below $1 trillion but partially recovered to $52,800 by press time. Trading volumes surged by 161%, hitting $71.8 billion.

Peter Schiff, a notable Bitcoin critic, predicts further turmoil once US market trading begins. He anticipates a significant decline in Bitcoin ETFs, with a potential 30% gap down. The situation underscores ongoing volatility and market uncertainty.